The penetration rate for credit cards is just around 5.4% when compared to the current number of debit cards in the country’s market. Even though the penetration is low, a large number of individuals are switching to credit cards for making payments.
However, a primary concern for prospective users is picking a product that offers the best credit card benefits. Choosing the right credit card is perhaps the most vital decision. The kind of card one picks can have a tremendous impact on his/her credit experience in the future.
Why should you apply for the best credit cards?
Listed below are a few reasons why you must only apply for the best credit card in India –
- High reward points
One of the key credit card benefits is that they offer reward points on spending. For example, a card may offer up to 2 points for every Rs.100 expense through it. Customers can redeem these points to acquire attractive discounts.
- Credit cards account for only around 5% of per capita consumption for Indians.
Nevertheless, the terms and conditions relating to reward points for each card may vary. Thus, a customer picking a credit card should study his/her expenses and determine what kind of reward point system works best for them. Opting for the best credit card with the most suitable reward point system should help maximize savings for the cardholder.
- Ease of bill payment
Several credit card users pick a card without checking the modes of bill payment on offer. Today, net banking has increased the ease and comfort of such bill payments. If credit card bill payment is a pressing concern, opting for the best card should make things simpler for you.
- Repaying bills through EMIs
Picking a decent card ensures that you can convert significant bill amounts into easy EMIs, without needing to bear additional interest on the outstanding sum. Such credit card benefits make it easier for average individuals to afford high expenses. Apart from helping clear bills, such EMI facilities also help a consumer maintain his/her credit rating.
- As of August 2019, Indians held more than 51 million credit cards.
Maintaining your credit score is crucial not only to avail significant credit limit on your card but also to avail loans from financial institutions in the future.
- Altering the billing cycle
A billing cycle is an important aspect of any credit card. Some card providers are rigid when it comes to following the billing dates, while others offer some flexibility to change the same, as per your preference and salary cycle. This is one of the credit card benefits for some of the top cards in the market.
Billing date changes can be immensely helpful in the event of a sudden shift in salary dates due to job change.
- Emergency loan against credit card
The best credit cards also offer the facility to convert your credit limit into an interest-free loan. This is significantly helpful when you require immediate funds to deal with emergencies. Since, you are already a credit card customer, availing these loans is faster and easier when compared to other unsecured credits.
For instance, the Bajaj Finserv RBL Bank SuperCard provides such a facility to customers. With this credit card, you can avail of an emergency personal loan that does not attract any interest for up to 90 days.
The company also provides pre-approved offers to customers, simplifying, and accelerating the application procedure. These offers are available on personal loans, business loans, and other financial products. As an interested consumer, you can check your pre-approved offers by providing your phone number and name.
As a prospective credit card applicant, you must check whether such a loan facility is available on the card that you are about to choose.
The first step toward finding the perfect credit card is to understand your expenses. At the end of the day, you need to be able to repay your credit card debt. Thus, planning and forethought are essential when choosing a card that suits your spending habits perfectly.